In response to the outbreak of the coronavirus (COVID-19), we’ve assembled this page to guide you and provide information and updates on what you can do and where you can go for business and financial assistance.
Continue to visit the Crosbie COVID-19 updates page for any updated information to help inform your financial decision making. You can also contact us at any time to help you navigate through all of the information and options available to you.
GOVERNMENT PACKAGE UPDATES - JobKeeper
We will keep you up to date with any update on any government stimulus package updates and how they will affect you and your family. Click on the links below for the latest information:
3 May 2020
Top Q&A’s from the ATO about COVID-19 stimulus - https://www.ato.gov.au/General/COVID-19/Top-calls-about-COVID-19/
28 April 2020
The ATO has extended the time to enrol for the initial JobKeeper periods, from 30 April 2020 until 31 May 2020.
If you enrol by 31 May you will still be able to claim for the fortnights in April and May, provided you meet all the eligibility requirements for each of those fortnights. This includes having paid your employees by the appropriate date for each fortnight.
For the first two fortnights (30 March – 12 April, 13 April – 26 April), the ATO will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by you by 8 May. This means that you can make two fortnightly payments of at least $1,500 per fortnight by 8 May, or a combined payment of at least $3,000.
If you do not pay your employees by this date, you will not be able to claim JobKeeper for the first two fortnights.
If you usually pay your employees less frequently than fortnightly, the payment can be allocated between fortnights in a reasonable manner. For example, if you pay your employees on a monthly pay cycle, your employees must have received the monthly equivalent of $1,500 per fortnight.
24 April 2020
The alternative eligibility tests for the JobKeeper scheme have been announced, these are for the businesses that don't fit the 'basic test', where turnover dropped more than 30% in the same time 12mths ago.
If you need help determining your eligibility then please contact your business adviser/accountant.
14 April 2020
The Treasurer released the guidelines governing the JobKeeper payment scheme. The guidelines set out the eligibility and obligations concerning the $1,500 per employee a fortnight JobKeeper payment for a 26-week period running from 30 March to 27 September.
Some of the key points are:
- Payments from the ATO back to the business under this scheme will not be paid until the first two weeks in May.
- Participation in the scheme is based on a “one-in all-in” requirement. If you apply for the JobKeepers scheme it will apply to all employees.
- You do not need to opt-in to the scheme immediately. You can do so at any point in the course of the six month period of operation of the scheme.#
- To be eligible for the JobKeeper payment employer and employees must meet the criteria.
You may be eligible as a business owner/operator/sole trader.
The read more link below links to the full article on how to apply for the scheme and paying your employees and includes:
- Enrolling for the JobKeeper payment online from 20 April 2020 onwards - [UPDATE] - Enrol for JobKeeper Payment now HERE
- Confirmation of eligible employees you will claim JobKeeper Payment for (available from 4 May 2020 onwards)
- What you need to do for your employees
If you need any assistance please contact us, we are here to help you navigate through all the information.
8 April 2020
The $130bn JobKeeper package bill has been passed in parliament. Read the details of the package below.
30 March 2020
The Federal Government announced a new $130bn JobKeeper payment plan as part of its third stimulus package. This is created to subsidise wages to ensure businesses can keep employees during the downturn, due to COVID-19.
Businesses will receive a wage subsidy of $1,500 per eligible employee, per fortnight to keep employees in work. This will be delivered through the ATO and based on payroll information.
Employers will pay their eligible employees and be reimbursed by the Government and the program is expected to run for 6 months, payments will stop if the employee is no longer employed.
Eligible employers include:
- Businesses with turnover less than $1billion and their turnover has dropped more than 30% relative to a comparable period.
- Sole traders and self-employed with an ABN and not-for-profits (including charities) that meet the turnover tests are eligible for the JobKeeper payment.
Eligible employees include:
- all full and part-time employees over 16 years of age and who were employed as at 1 March (which includes employees who have been stood down).
- long term casual employees (over 16 years of age who have been employed for longer than 12 months at 1 March 2020).
- Australian citizens or the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder.
- Those not in receipt of JobKeeper payments from another employer.
Businesses apply to ATO and can register their interest here -> https://www.ato.gov.au/Job-keeper-payment/
Please note the legislation has not been released on this yet and we are awaiting further details to be announced.
23 March 2020
The Government released a second stimulus support package to help with the effects of coronavirus on the economy. Some of the updates are:
- PAYG Withholding credits for businesses increased
- The threshold at which creditors can issue a statutory demand for payment of amounts outstanding will increase
- Instant asset write off – increased
- Assets over $150,000 eligible for 50% instant write off
- 50% subsidy for apprentice or trainees wage
Supporting the flow of credit
- The Government will provide a guarantee of 50% to SME lenders for new unsecured loans to be used for working capital.
- JobSeeker Payment, Youth Allowance Jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit doubled
- 2 x $750 payments to social security, veteran and other income support recipients and eligible concession cardholders
- Individuals affected by the Coronavirus allowed to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. See below for more information.
- The Government is temporarily reducing superannuation minimum drawdown requirements
- Reducing Social Security Deeming Rates
16 March 2020
The Government has announced a $17.6 billion investment package to support the economy as we brace for the impact of the coronavirus.
The yet to be legislated four-part package focuses on business investment, sustaining employers and driving cash into the economy.
1. Business investment
- Increase and extension of the instant asset write-off
- Accelerated depreciation deduction
2. Cash flow assistance for small and medium-sized business
- Tax-free payments up to $25,000 for employers
- Wage subsidy of up to 50% of an apprentice or trainee wage
3. Targeted support for severely affected sectors, regions, and communities
4. Household stimulus payments to drive cash into the economy
- Tax-free $750 payment to social welfare recipients
NSW GOVERNMENT PACKAGES
13 April 2020
The NSW Government has announced that it will offer land tax concession to commercial landlords who should then pass the savings to their commercial tenants affected by the economic effects of the COVID-19 pandemic. Eligible landlords, who will have to offer their tenants a rent reduction, will be able to apply for a land tax concession.
3 April 2020
The NSW Government has just announced thousands of small businesses battling with the COVID-19 shutdown across NSW will receive grants of up to $10,000 under a new assistance scheme.
To be eligible, businesses will need to:
- have between 1-19 employees and a turnover of more than $75,000
- a payroll below the NSW Government 2019-20 payroll tax threshold of $900,000
- have an Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020
- be highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020
- use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice
- provide appropriate documentation upon application.
Applications for a small business grant of up to $10,000 are now open through Service NSW and remain open until 1 June 2020. Click here to apply.
27 March 2020
The second stage of the NSW Government economic package. Click here for more details.
Keeping jobs and businesses afloat:
- the creation of a $1 billion Working for NSW fund to sustain business, create new jobs and retrain employees.
- deferral of payroll tax for business with payrolls over $10 million for six months
- deferral of gaming tax for clubs, pubs and hotels, and lotteries tax for six months, conditional on these funds being used to retain staff.
- deferral of the parking space levy for six months
Helping the vunerable
- $34 million boost in funding to prevent homelessness
- $30 million to boost the Energy Accounts Payments Assistance scheme
- $10 million to support charities and $6 million additional funding for Lifeline’s operations in NSW.
- deferral of rents for six months for commercial tenants with less than 20 employees in all Government-owned properties.
17 March 2020
The NSW Government COVID-19 package. Click here for more details.
- $700 million extra funding for NSW Health.
- $450 million for the waiver of payroll tax for businesses with payrolls of up to $10 million for three months
- $56 million to bring forward the next round of payroll tax cuts by raising the threshold limit to $1 million in 2020-21
- $80 million to waive a range of fees and charges for small businesses including bars, cafes, restaurants and tradies
- $250 million to employ additional cleaners of public infrastructure
- more than $250 million to bring forward maintenance on public assets
- $500 million to bring forward capital works and maintenance
7 April 2020
The National Cabinet's mandatory code of conduct for commercial tenancies has been released for commercial landlords and tenants, to help alleviate financial stress from the COVID-19 pandemic. This will apply to tenancies where the landlord or tenant is eligible for the JobKeeper program and where turnover is $50m or less. Read the code...
30 March 2020
The Australian Bank Association announced today that banks are to help commercial landlords who help tenants.This includes:
- Australian banks will offer support to all businesses with loans up to $10m (previously was up to $3m).
- These businesses now eligible for 6 month loan deferral
- Commercial landlords with loans up to $10m will be able to defer their payments for 6 months and must guarantee that they will not evict anyone under financial distress as a result of COVID-19.
If you have been financially affected by COVID-19 you can access up to $10,000 of your superannuation in 2019–20 and a further $10,000 in 2020–21.
You will not need to pay tax on amounts released and the money withdrawn will not be taken into account for any income or means tests.
Eligible individuals who wish to access the early release of super for COVID-19 can do so from 20 April 2020. You must apply via ATO Online through myGov to access:
- $10,000 of your superannuation by 30 June 2020
- a further $10,000 between 1 July 2020 and 24 September 2020.
With the fallout from COVID-19 and the effects it is having on businesses, we understand finances are tough for businesses and individuals at this time.
If you are having financial difficulty the majority of lenders have hardship policies in place for individuals and you should get in touch with your bank. For more information go to the Australian Banking Association – Financial difficulty page which will link to each bank's assistance package and how to apply.
Lenders all have financial hardship policies available if you are unable to meet your existing financial obligations. Arrangements depend on your circumstance and situation and could include:
- deferring or reducing loan repayments
- restructuring and consolidating loans
- altering loan repayments to interest-only
Crosbie Finance is here to help you navigate the unknowns in this difficult time so please get in touch if you need any advice.
For more information recently sent out on home loans and business and equipment loans READ HERE or click on the image below.
To find out more on what your bank is offering click on the bank's logo below:
Crosbie Wealth Updates
HELPFUL LINKS AND ARTICLES
Australian Banking Association - https://www.ausbanking.org.au/
ATO MyGov website - myGov website: www.my.gov.au.
Beyond Blue - https://www.beyondblue.org.au/
If there is anything you have questions on anything in regards to this page then please contact us.
In response to the recent government announcement to cancel all non-essential gatherings to prevent the spread of COVID-19, we will be closing our office effective Tuesday 24 March. and working remotely.
Rest assured during this time we remain available to advise you and will be operating our services to support and assist you. You can contact us as normal on 02 4923 4000.
We will continue to update you as soon as there are any changes.
We understand the impact this is having on all clients and businesses including our own and on behalf of the entire Crosbie family stay safe.